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How to Build a Loyal Customer Base

There are some business practices that are almost mandatory in order to build a loyal customer base. Unfortunately, many businesses have taken their customers for granted, providing them with minimal demonstrations of appreciation or gratitude over time. Due to a variety of other factors, such as demand, networking, location or affiliate referrals, some businesses have done well in spite of poor customer service.

Providing a service or goods to your customers is a privilege that is often soon forgotten. It takes a financial crisis such as the one we are currently experiencing to make us pay attention to the possibility that we are not going to be able to keep our customers as many sources have dried up.

The increased competition for customers in this economy means that to survive or to even profit in the next few years, necessitates keeping customers happy. The shift in emphasis due to the economic downturn indicates that businesses can no longer rely on passive business. This is measured more by your customers than anyone else.

It is no longer enough to provide a solid service or kind of merchandise that is needed. It is no longer enough to have a good location. Nor, unfortunately, is it enough to have a good network of referrals, as those referrals may now be out of business themselves.

At this time, more so than at any in the recent past, it is imperative that businesses offer something that keeps customers coming back. That "something" is relationship. Business relationship is more than always looking at the bottom line. It is more than keeping regular business hours, answering the phone and showing up on time to meet or serve someone. Many mediocre businesses do that. That is Business 101. In this economy, you must have much more than the basic knowledge of what it takes to serve your customers. What is that?

You and the people who are employed by you or who w ork with you must care about the people you serve.

This is business relationship. It is very much based on trust, on empathy, on caring what your customer cares about and who they are as people, not just as a source of money. It is also based on giving extra attention to details of what you provide. It means giving customers who are repeat customers a break on price or even a free service once in awhile to show them that you noticed and appreciate what they have given you. It means calling them a week or two later to see if the service or goods were acceptable and if there were any concerns or questions. This tells them you are thinking about them.

Relationships also mean giving more than you get at times without complaining or bringing attention to it. Staying in touch is important, and randomly calling your customers to see what they might need is appreciated.

See below for some other steps you might want to take.

Offer to help customers solve their problems, even if it doesn't profit you in any way. If you sell bagels and your customer also wants to know where to take their in-laws to dinner, take the time to make some suggestions. If it's a product that you don't carry, offer to make a call or two to try to find it for them. Going the extra mile when there is nothing in it for you means a great deal to customers. They might even tell others about what a nice person you were to help them. This can bring in business just through word of mouth.

Take time with your customers. Don't rush them, discuss whatever it is that they need to go over with you. If you are in a service industry, take the time to talk with them, not just about business, but about them. Ask them how they are and actually listen to what they say. Show them that their concerns are your concerns, whether it's about business or them, personally.

Be available and do what you say you will do. If you promise a service at a certain time, be there. Businesses that disregard customer's time are pretty clear on where their priorities are, and it is not with the customer. Calling late with an inexcusable reason for not at least calling is sure to not keep customers. Reliability is really the first step in almost everything else. If the customer cannot trust the business to do what it says, then everything else is suspect, no matter how "nice" they are.

Put some quality control measures in place. Your business is only as good as where the "tire meets the road," and while you may have a great set of values when it comes to how you feel about your customers, is this being reflected by you and the people in your company? For quality control, you may wish to have a follow-up survey to ensure your customers had a good experience doing business with you. This also will inform you of existing or potential problems that your customer is concerned about. This way your customer knows you care and that you are addressing his (her) needs, and they will remember you for that.

Understand that raising prices to make up for lost business is a losing proposition. Others may do it and can justify it to themselves, but customers have choices. Lowering your prices significantly will increase your volume and you will more than make up the difference. You may have to work a bit harder to bring in an increase in business, but everyone who deals with you will appreciate that you are really doing everything you can to win their trust and confidence.

Be honest, even if it is uncomfortable. Inflating price, manipulating price or building value just to get them to buy is shaky ground. They may buy from you once with these tactics, but their gut feeling is to find someone else next time, and they won't recommend you to others.

Difficulty: Moderate

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